
Anyone baffled about the causes of the current global financial crisis, need look no further than Alex Gibney's fascinating documentary 'Enron : The Smartest Guys In The Room'. We all know that Enron was the first of many huge bankruptcies that have destabilised money markets and seemingly, everything else.
But what's interesting is how they got there in the first place. Enron went quickly from being a company worth some $65bn to going bust with the loss of 20,000 jobs. These days, these types of disasters are a weekly occurrence, and what with the Madoff scandal, it's really about time that we all found out exactly what has been, and almost certainly continues to go on inside these companies.
What it boils down to is greed, nothing more. During the financial boom of the last 10 years, lots of people made lots of money. One Enron guy walked off with $250m alone, and many many others became millionaires before the age of 30. Not only that but several other respected companies also made a packet. Arthur Anderson were receiving fees of $1m per week from Enron alone, but were later proved to complicit in their fraud, and also went bust with the loss of a further 20,000 jobs. The bottom line was that a few executives at the top of Enron, and several other related businesses were making insane amounts of cash, so everyone went along with it and no-one asked too many questions.
It was clear for some time that Enron's figures didn't add up, but so what, everyone was getting rich. However when it did all go wrong 40,000 lost their jobs and thousands more their pensions. And the biggest scandal of all was the Californian Energy Crisis, whereby Enron shut down power stations in California, in order to force the price of energy up, and then demanded huge prices from the State. The bill to the public purse was something north of $30bn. The White House refused to intervene, but then money buys you a powerful lobby, and not only were Enron the largest contributors to the Bush campaign, the chairman could also command an audience with Dick Cheney.
The overwhelming sense I got from the film though, was that this is only the tip of the iceberg, and that these practices have been widespread throughout the business world for years. Whilst a boom is in effect, everyone makes a big profit and no questions are asked. When it goes wrong and ordinary people get screwed it's too late. But who is to blame ? Is it the corporations, should we blame them for being greedy ? Well, I think it'd be a bit churlish to do so frankly, after all big business is all about the money. Their sole reason to exist is to make money. They are responsible to no-one, have no moral compass and will do anything they can get away with, in the name of profit. This is the inevitable result of the free market economy that we've all been so proud of for so long.
For me, the people to really blame are the governments of the world. They let this happen, they allowed these companies the opportunity to exploit the world for gain, and when it came to the crunch they were unwilling to act, or simply denied there was a problem. How long for instance did they tell us there was no recession coming, and all would be well. Were they really that stupid, or just inept liars ? Either way, it's not flattering is it. So when you watch the stories on the news of this financial apocalypse, and watch the jobs go in their millions, ask yourself who was supposed to protect us from all this, and how on earth they have managed to avoid the blame for it.